Japan Exchange Group to cancel treasury shares as earnings forecasts rise

Japan Exchange Group (JPX) has decided to cancel 12,793,030 shares of common stock, representing 1.22% of its total issued shares before cancellation, with an effective date of November 12, 2025. This move follows robust financial performance in the second quarter of the fiscal year ending March 31, 2026, where operating revenue increased by 9.2% year-on-year to JPY 89,322 million, and net income attributable to owners of the parent company rose by 6.9% to JPY 34,553 million.

The strong performance prompted JPX to revise its consolidated earnings forecast upward for the fiscal year ending March 31, 2026. Operating revenue is now projected at JPY 176,000 million (up 0.6% from the prior forecast), operating income at JPY 96,500 million (up 1.0%), and net income attributable to owners of the parent company at JPY 65,000 million (up 0.8%). The dividend forecast remains unchanged, targeting a payout ratio of at least 60% with a projected JPY 50.0 per share.

The increase in operating revenue was broad-based, with significant contributions from clearing services revenue, which surged by 32.1% year-on-year to JPY 23,059 million, driven by deposited collateral assets related to interest rate swap transactions. Trading services revenue also increased by 3.8% to JPY 34,767 million, primarily due to higher trading values in cash equities.